Cost Optimization in Disruption Conditions: A Case Study in Small Medium Enterprise

Purpose: The objective of this study was to design a cost optimization model that offers production improvement for SMEs. Theoretical framework: Several studies related system disruption management have been conducted, with the majority focusing on large companies. However, small and medium enterprises (SMEs) limitations compared Repairability is considered optimization. Design/methodology/approach: This research designed repairability process SME. Findings: There need given caused by defective products in clear difference total profit between current state without proposed conditions repairability. SMEs suffer massive losses absence repairs, assuming they do not consider repairing defect rate approximately 15%. produces many downgraded products. still needs be improved increase profits. Research, Practical & Social implications: implied there product defects at SMEs, especially those 15% rate. use optimizes capacity based improvements. research, considering are more susceptible disruptions Originality/value: novelty paper adding textile sector, then downgrade under